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Home My WebLink About1999-06-28 City Council (16)BUDGET ’99 - ’01 City of Palo Alto C tyMana er’s Re oft TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENTi UTILITIES DATE:JUNE 28, 1999 CMR:286:99 SUBJECT:APPROVAL OF AMENDMENT NO. 3 OF CONTRACT NO. C8096901 WITH UNDERGROUND CONSTRUCTION CO., INC., TO EXTEND SERVICE PERIOD FOR ELECTRIC UTILITY TRENCH AND SUBSTRUCTURE INSTALLATION AND INCREASE CONTRACT AMOUNT BY AN ADDITIONAL $377,727 RECOMMENDATION Staff recommends that Council: Approve and authorize the Mayor to execute the attached Amendment No. 3 to contract C8096901 with Underground Construction Co., Inc., to extend the performance period through the final year of a 3 year extension authority for fiscal year 1999-2000 and increase the contract amount by $377,727 for a total contract price of $1,369,881. Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract to cover additional but unforeseen work which may develop during the project. The value of such change orders shall not exceed $37,000. DISCUSSION The Electric Utility establishes an annual contract with a general contractor to dig trenches and install conduits for electric utility customer services, small extensions, replacements to the existing underground electric system and to install communication, street light, traffic signal, and fiber optic conduits and foundations. Each small job is individually quoted, a price agreed upon and payment made upon completion of work. In July 1997, the City entered into a contract with Underground Construction Co., Inc., in the amount of $377,627 for Electric Utility Trench and Substructure Installation (Reference CMR:317:97). Underground Construction was selected as the lowest responsible bidder at that time. Underground Construction has been working under that contract and has performed very well. CMR:286:99 Page 1 of 3 The contract allowed the City and Underground Construction to extend the contract for two more years, through the FY 1999-2000. Extension is subject to the City of Palo Alto City Council’s annual approval of each year’s budget and appropriation of funds for this contract; the contractor’s compliance with the terms and conditions as established by the invitation for bid; a mutual agreement to continue the contract with negotiations beginning 60 days prior to each 12 months’ anniversary date; satisfactory compliance and extensions by the contractor with the established certificates of insurance, licensing, permits, City contract or other requirements of the terms and conditions; and firm pricing for subsequent 12 month term(s) as set forth in Section 2.0 of the invitation for bid. In June 1998, the City issued Amendment No.1 to the contract (Reference CMR:286:98), to extend the performance period through fiscal year 1998-99 and increase the contract amount by $377,627 for a total contract price of $755,254. In January 1999, the City issued Amendment No.2 to the contract (Reference CMR: 123:99), to increase the contract amount by $200,000 for a total contract price of $955,254. The additional funds were used to construct three projects that had not been anticipated and were not included in the original contract estimate for FY98/99 work. These three projects were the construction of the communication link between the Downtown Library and City Hall, the traffic signal upgrade at EmbarcaderoiMiddlefield and Embarcadero/Newell, and the construction of the traffic signal conduits on University Avenue. In May 1999, staff issued contract Change Order #2 to use the $37,000 contingency monies for additional unforeseen work that had developed during the contract period. The change order increased the total contract amount to $992,254. To date, more than 300 electric services and small system improvements have been performed under the contract. Staffrecommends exercising the option of extending the contract for an additional and final 12 month period as provided for in the original contract. Underground Construction has agreed to hold its rates and extend the contract under the same terms and conditions for an additional year. This amendment will extend the performance period one year, through June 30, 2000, and increase the contract amount by $377,627. POLICY IMPLICATIONS This report does not represent any change to existing City policies. RESOURCE IMPACT Funds for this work are included in the 1999/2000 budget for Electric Fund Capital Improvement Project, Project Number 8928. ENVIRONMENTAL REVIEW This project is found to be categorically exempt in accordance with the provisions of the California Environmental Quality Act (CEQA.) CMR:286:99 Page 2 of 3 ATTACHMENTS Attachment:Amendment No. 3 to Contract No. C8096901 PREPARED BY: Sager Farraj, Senior Power’Engineer DEPARTMENT HEAD: JOHN L.’I’I~RICH Director of Utilities CITY MANAGER HARRISON Assistant City Manager CMR:286:99 Page 3 of 3 AMENDMENT NO. THREE TO CONTRACT NO. C8096901 BETWEEN THE CITY OF PALO ALTO AND UNDERGROUND CONSTRUCTION CO., INC. This Amendment No.Two to Contract No. C8096901 (~Contract") is entered into , by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California (~CITY"), and UNDERGROUND CONSTRUCTION CO., INC., a California corporation, located at 5145 Industrial Way, Benicia, California 94510 ("CONTRACTOR"). RECITALS: WHEREAS, the Contract was entered into parties for the provision of electric utility substructure installation services; and between the trench and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION I. Section 1 is hereby amended, so that the term is hereby extended for one year, commencing July I, 1999 and expiring on June 30, 2000. SECTION 2. Section 2 is hereby amended, so that the Base Contract amount for FY 1999-2000 shall be $377,627 for a total contract price of.$i,369,881. SECTION 3 Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. /// /// /// /// 1990614 lac 0071683 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Contract on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk Mayor APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Assistant City Manager UNDERGROUND CONSTRUCTION CO., INC. Name: Harr~Robinson Title: V.P. Name : Title: Director of Utilities Taxpayer Identification No. ~’’76-0575471 Director of Administrative Services Risk Manager (Compliance wiZh Corp. Code § 313 is required if the entity on whose behalf this contract is signed is a corporation. In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable) 990614 lac 0071683 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF COUNTY OF California Solano ) ) ) On June 22~°1999 , before me, the undersigned, a notary public in and for said County, personally appeared Harry Robinson, V.Po of Under,round Consto Co.~ Inc. personally known to me (em--~z~<~--t-~--m~-~mr~-~-h~-4ma~i~m-~>f s~t~s~actcry-~-~i~t~n~’~) to be the person(~) whose name(~ is/a-r~ subscribed to the within instrument, and acknowledged to me that he/s4~e/t-~ executed the same in his/her-/t4~r authorized capacity(ies~, and that by his/her~/t~eq-r signature(~ on the instrument the person~s~, or the entity upon behalf of which the ~person~s~ acted, executed the instrument. WITNESS my hand and official seal. Notary Publi~ BEVERLY PATTONCOt~M. 1078709 NOTARY PUBLIC "C.~LtFORN~~ co~ .~ 3 990614 lac 0071683 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF California COUNTY OF Solano ) ) ) On June 22~ 1999 , before me, the undersigned, a notary public in and for said County, personally appeared Lynn E. Barr~ Jr.~ President of Underground Const. Co,, Inc. , personally known to me (or proved to mc on the b~sic c~ ~=_tisfactery evidence) to be the person(~ whose name(~ is/a~e- subscribed to the within instrument, and acknowledged to me that he/she/t-be~ executed the same in his/he~/t~mi-~ authorized capacity(i-e~, and that by hfs/N~r/the-i-~ signature(~+ on the instrument the person¢8~, or the entity upon behalf of which the person~s~ acted, executed the instrument. WITNESS my hand and official seal. Notary BEVERLY PATTONCOMM. 1078709 NOTARY PUBLIC - CALIFORN~SOLANO cOUNTY ~ CO~L EXP,RF.S OEC. I$. I, I~ 990614 lac 0071683 4